Disney’s theme parks are supposed to be the happiest places on earth.
The entertainment giant was hiding an ugly secret from the public.
And Disney settled a lawsuit for committing this sick crime at a theme park.
Disney sued for underpaying workers at Anaheim theme park
Disneyland Resorts in Anaheim, California is known for its slogan of being the happiest place on earth.
The experience of working at the theme park was not so happy for some of the employees.
A class action lawsuit was filed against the Walt Disney Company for failing to pay workers at Disneyland the minimum wage.
Disney agreed to a preliminary settlement with more than 50,000 current and former workers at the Anaheim theme park.
The company will shell out $233 million for not paying the $15-an-hour minimum wage that Anaheim set in 2019.
Disney will pay interest, fees, back pay, and other penalties as part of the settlement.
One of the attorneys, Randy Renick, who represented workers in the lawsuit told the Los Angeles Times it was a historic judgment.
“What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities,” Renick said.
Disney suffers another black eye from labor unrest
Disneyland spokeswoman Suzi Brown told Newsweek that the company was happy to put the matter behind them.
“We are pleased that this matter is nearing resolution,” Brown said. “Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95 percent of them make more.”
Anaheim passed Measure L which required companies in the California city that receive tax incentives to pay a minimum wage set by the measure.
Disney tried to argue in court that it was not bound by the requirements Measure L because of earlier agreements the company had made with the city.
Occidental College public policy professor Peter Dreier is a co-author of Working for the Mouse: A Survey of Disneyland Resort Employees.
He told Newsweek that Disney has a history of mistreating its workers.
“The company has been stiffing … workers for several years,” Dreier said. “They’ve denied them the back pay they’re owed while paying CEO Bob Iger over $31 million a year.”
This became the latest unpleasant labor unrest that the happiest place on earth has had to deal with this year.
With the settlement, Disneyland avoided a strike by the four unions who represent most of the workers in theme parks.
A total of 14,000 employees had voted to authorize a strike this upcoming summer, during the peak of tourist season at the park.
Unions accused Disney of unfair labor practices.
Unionized employees were upset they could not wear a button with a white glove like Mickey Mouse wears on a clenched paw on their costumes and uniforms to show union solidarity.
Disney ultimately caved to the unions’ demands for higher wages and benefits.
The entertainment giant is locked in a state of near-constant battle with Big Labor after its workforce was unionized.
DeSantis Daily will keep you up-to-date on any new developments in this ongoing story.
